Answer:
1.- rate 3.5 dollars
2.- underapplied for 17,500
adjusting entry:
cost of goods sold 17,500 debit
manufacturing overhead 17,500 credit
Explanation:
We calculate the predermined overhead rate by dividing the expected overhead cost by the cost driver figure.
1,680,000 / 480,000 = 3.5 dollars
Applied overhead
actual labor hours x rate
475,000 x 3.5 = 1,662,500
actual (1,680,000)
underapplied (17,500)
As the actual cost were higher than our actual cost the overhead is underapplied we need to recognize more overhead cost in our inventory.
The amount of compensation expense Crane should record for 2017 under the fair value method is $207000
<u>Solution:</u>
From the given,
Stock options for 63000 shares
$10 par value common stock
$25 per share and the option price was $20
Total compensation expense = $627000
On calculating we get,
We can conclude that there is $207,000 decrease. Therefore, the correct answer is option c.
Answer:
Option D. businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
Explanation:
The reason is that the corporate strategy manages the subsidiaries and the parent company as well to drive maximum value from the whole business efficiently by effective strategies. The subsidiaries that were generating profits after acquisition of $5000m and before acquisition of $4500m means that the corporate strategy was effectively implemented which helped the whole parent and subsidiary to drive maximum benefits out of its owned assets.
Answer:
a. Amount realized $175,000
Less: Adjusted basis <u>($35,000)</u>
Realized gain <u>$140,000</u>
Recognized gain $0
Observation: What Ed believe is that the exchange could qualify as section 0131 postponement treatment
b. Amount realized $175,000
Less: Adjusted basis <u>($175,000)</u>
Realized gain <u>$0</u>
Recognized gain $ -
Exchange for the land is $175,000
c. One can determine if it is recognized gain if the figure is positive and if the figure turns negative (i.e -$2,000) then, that is recognized loss.
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